Chrysler swings to profit on strong sales

Chrysler swung to a $212 million profit in the third quarter and boosted its profit forecast for 2011 Thursday, driven by strong sales and the benefits of its alliance with Italy's Fiat. It was just the second time Chrysler posted a net quarterly profit since emerging from a government-backed bankruptcy in June 2009, but is in line with the five-year plan laid out in November 2009 to revive the iconic American carmaker. "This house continues to be fully focused on financial performance and making outstanding cars and trucks by leveraging its alliance with Fiat," Sergio Marchionne, chief executive officer of both Chrysler and Fiat, said in a statement. The quarterly gain, which compares to a loss of $84 million in the third quarter of 2010, comes amid a 24 percent jump in global sales to nearly 500,000 vehicles. Chrysler's market share in the key US market rose to 11.4 percent in the third quarter from 9.6 percent a year earlier. The results were released a day after the United Auto Workers union ratified a new four-year contract at Chrysler which Marchionne said "will support us in our growth plans and significantly reward our employees for their contributions to the revival of Chrysler." Chrysler raised its forecast for 2010 net income to around $600 million from previous guidance of between $200 and $500 million. Net revenue for 2010 is forecast at $55 billion, with a modified operating profit of $2 billion.